The US donut and coffee chain is seeking to redirect company resources to support further expansion in the US, its largest market globally
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Krispy Kreme operates 2,000 stores and a further 15,500 points of access across 40 markets globally | Photo credit: Krispy Kreme
Krispy Kreme is seeking master franchising partnerships across seven international operations to better focus its efforts on US expansion.
Founded in North Carolina in 1937, Krispy Kreme operates 2,000 stores and a further 15,500 points of access – retail channels where its products can be purchased – across 40 markets globally.
Alongside its US business, the donut and coffee chain currently fully owns its operations in the UK, Ireland, Australia, New Zealand, Japan, Mexico and Canada. However, speaking to investors following the release of its full-year results, CEO Josh Charlesworth said the best way for Krispy Kreme to continue growing internationally would be through local master franchisee partners.
Charlesworth said Krispy Kreme will seek to replicate the success of its franchise operations in France and South Korea, where the brand works alongside established partners Columbus Café & Co and Lotte respectively.
Krispy Kreme launched in France in December 2023 and has scaled its bricks-and-mortar presence to 19 stores across the last 12 months. Licensee Columbus Café & Co is seeking to add another 50 points of access in 2025 as part of an upcoming supermarket partnership rollout.
“We have strong and growing businesses in several international markets that we both own and our franchise. But we think the best way going forward, the fastest way and most the capital-efficient way, is to evaluate refranchising the international markets that we own. We intend on doing this to make sure that we can focus most of our time on expanding partnerships in the US and strengthening our US footprint,” Charlesworth said.
Krispy Kreme’s total net revenues for the 12 months ended 31 December 2024 fell 1.2% to $1.66bn, which it attributed to the majority stake sale of its Insomnia Cookies business in the third quarter and lost revenue from a cyber security incident in the fourth.
International revenues in company-owned markets grew 6% year-on-year to $519m, driven by strong performances in Canada and Japan. Krispy Kreme’s full-year US sales fell 4% to $1bn while its Market Development segment – which includes franchise operations globally – posted a 4% decline.
The move to refranchise its international operations comes as Krispy Kreme scales its presence in the US, which generates 64% of the JAB Holding Company-backed chain’s revenue and remains a key growth market. Krispy Kreme signed a significant distribution deal with fast-food giant McDonald’s in the second quarter of 2024 and expects to deliver donuts to 6,000 McDonald’s restaurants by the end of 2025.
US distribution is also being supported by partnerships with key retailers Kroger, Publix, Target and Costco.